We recommend a buy in Geometric’s stock from a short-term perspective. The stock is in an uptrend since the November low of Rs 36.5. It took support from the medium-term uptrend line on May 2011 and is moving higher once again.
This also occurs close to 50 per cent retracement of the up-move from the 2011 low. Oscillators in the daily chart have given a buy signal though some of the faster oscillators are indicating that the stock is overbought.
The stock spiked sharply higher on Monday, gaining Rs 7 or 10 per cent. What is more interesting is that the stock has managed the highest close since January 2011. Short-term investors can buy the stock with stop at Rs 77. The stock can move higher to Rs 82 or Rs 86 in the coming trading sessions.